If the owner withdraws some cash for personal use, the asset Cash will decrease through a credit and the owner's equity will decrease through the debit part of the accounting entry. The debit might initially be recorded in the sole proprietor's Drawing account but this account is also a temporary account that will cause the owner's equity to decrease.

Generally speaking, the credit balance reported in the owner's or stockholders' equity section of the balance sheet reflects the owners' investments in the company plus the profits earned minus the amounts distributed to the owners since the time that the company began.

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